Whitepaper lists "A solution to help in risk management for brokers.". Can you elaborate more on this? I find it hard to imagine what it can be.
Hello! Excellent question!
When we speak about Risk Management solution for brokers regarding currency conversion, we speak about a system which will show them their risks and liabilities in different currencies. Such kind of systems used by regulated brokers, due to regulators rules, but for fiat currency.
We will explain the very simplified version of such system because it is too complicated and consists of many parameters:
So for example, all regulated European FX brokers need to calculate several risk parameters in EUR, but their customers could trade on many different currency pairs like GPB/USD, GBP/CHF, NZD/CAD, etc. And there are a lot of clients, and all of them could be in market in different directions(Long/Short, etc.)
In this case, brokers need to understand how much liabilities they have in case of all these currencies, and in EUR as well. It shows to brokers how their currency liabilities changes in dynamic while their client's trade, and allow them to understand if they need to exchange one currency to another to prevent rate risks, etc.
So, what we could offer them, is the same system, but based on GVT rate. So they will be able to understand 'when' and 'how much' they need to exchange from or to GVT. We have a partner who has great experience in such systems.
So, how it will help broker: broker will not need to make conversation each time when someone deposit or withdraw some specific currency (like GVT) but make it time by time. So it will dramatically lower amount of conversions, which will lead to lower total commission and fewer risks.
